Suppose Billy owns a hair salon in Dallas.He has one large hair dryer for which he paid $1,000.If he can sell the dryer one year later for $800,his total economic depreciation equals

Question

Quizplus · Accepted Answer

Economic depreciation is the decrease in the value of an asset over time. In this case, Billy paid $1,000 for the hair dryer, but one year later he can only sell it for $800. Therefore, the economic depreciation is $1,000 - $800 = $200. Option B is the correct choice.

Suppose Billy Owns a Hair Salon in Dallas